What It’s Like to be Wall Street Broker?

If you have seen The Wolf of Wall Street, you have the idea what broker does. It may not be as wild as described in the movie, but it sure is a very interesting job. If you have the talent, you may become the next millionaire, who knows…

What is Broker and Can I Become One?

Stock broker is a person who buys and sells stocks for clients. They are usually associated with Broker Company. To become one, you have to get your license. In order to get it you have to pass several tests. There are several types of broker professionals, depending on the type of services they provide and the kind of license they hold.

College education is not required in this field. For example Chris Gardner, the main character of true-story-based movie Pursuit of Happiness, is the shining example. He struggled with homelessness in the 80s, eventually he found a broker job and made it to the top. The truth is, chances of finding a broker job get higher with degree in finances or related fields.

The question is, what exactly do these people do? Well, if they are good, they earn a lot of money, that’s for sure. They buy different equity securities and wait what happens next. If the price goes up, they sell and earn money. If the price falls, they lose.

Stock Speculator or Stock Trader?

These are two different techniques of broking. Stock speculators usually try to profit from short-term investments. This path is more risky, but they can profit much faster in an ideal situation.

Stock traders invest in long-terms. They put trust into selected companies, which they believe will grow. After this time period they sell their share and earn profit.

Risks

Stock is a very uncertain place. Brokers make their decisions based on hours of research on companies they focus on. Even if broker is convinced to buy, he can’t be 100% sure if it’s a good move. The biggest threats are stock market crashes (like one in 2008). Almost everyone loses the money in situations like this. In 1929 Wall Street crashed, it is well known as a ”Black Tuesday”. It has started so called ”Great Depression” which went on for next 10 years…

 

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